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Bonuses · New York Budget · Taxation · Wall Street
Wall Street bonuses increased by 9% to $49.2 billion in 2025, with average payouts rising 6% to $246,900, according to State Comptroller Thomas DiNapoli, but these figures fell short of New York City and State budget projections, creating significant revenue shortfalls.
Industry profits jumped over 30% to $65.1 billion, driven by strong trading, underwriting, and asset-management fees. DiNapoli's report projects these bonuses will generate an additional $199 million in state income tax revenue and $91 million for the city, which is less than anticipated.
Mayor Zohran Mamdani's $127 billion budget projected a 15.1% bonus increase, while Governor Kathy Hochul's office estimated 25.9% growth, leading to potential shortfalls of hundreds of millions for the state and tens of millions for the city. Mamdani is now threatening wealth taxes, corporate levies, and property tax hikes to close a reputed $5.4 billion budget gap.
Hochul, despite previously urging the wealthy to leave, now encourages their return, facing re-election and potential pressure to raise taxes. The securities industry contributed $22 billion to the state and $7 billion to NYC budgets in 2024, but New York's share of finance jobs is declining, with other states like Texas and Florida actively luring firms with lower taxes.
Average annual salary in finance, including bonuses, reached $505,677 in 2024, nearly five times the city's private sector average.
